Turkish companies are preparing to implement their plans for the reconstruction of the Syrian economy

Syria's interim president, Ahmad al-Sharaa, addressed economic relations with Turkey during his recent visit to Ankara amid efforts by Turkish companies to significantly expand their operations in Syria in order to boost bilateral trade.

According to data from the Turkish Exporters Assembly, Turkish exports to Syria increased by 20% in December, following the fall of former president Bashar al-Assad, and then experienced an increase of more than 38% in January.

In this regard, executives from Turkish companies and associations revealed to Reuters that they are working on the creation of new shipping routes and on the development of investment plans to expand production capacity in Syria, devastated after years of war. In addition, they anticipate significant growth in economic relations between the two countries. 

After supporting the rebel groups opposed to Al-Assad during the war, Turkey has strengthened its relations with Syria. In this sense, Al-Sharaa chose Turkey as his second visit abroad as interim president, after Saudi Arabia. 

In addition to the political ties, Turkish exports to Syria increased by 244% last month, while exports of cement, glass and ceramics rose by 92%, and those of metals grew by 73%. Exports of fruit and vegetables also tripled. 

‘Exports could have exceeded 6 billion dollars if trade had not been affected by events in Syria over the last 13 years’, Bilgehan Engin, director of the Turkish Transport and Logistics Association, told Reuters. However, according to Engin, ‘they could reach this level within two to five years’.

Currently, trade is affected by a buffer zone at the Bab al-Hawa border crossing, where Turkish lorries must transfer goods to Syrian vehicles for security reasons. Exporters and business leaders point out that this increases both shipping costs and times. ‘A bilateral agreement to eliminate the buffer zone and allow Turkish lorries to circulate freely within Syria would favour an increase in trade,’ Engin said. 

Last month, the Turkish Ministry of Trade announced that the Syrian and Turkish authorities had agreed to start talks to reactivate a free trade agreement and to promote cooperation in areas such as transport, recruitment and investment throughout Syria.

‘Turkey aims to achieve a trade volume of 10 billion dollars in the medium term,’ said Ibrahim Fuat Ozgurekci, director of the Turkish-Syrian Business Council. 

For the moment, Turkish Airlines has already been one of the few airlines to resume flights to Damascus after 13 years. 

On the other hand, Syria's new finance minister, Basil Abdul Hannan, told the news agency that the country's Islamist leaders are pushing for radical reform towards a ‘competitive free market economy’, marking a significant change from decades of ‘corrupt state control’. 

In response, Turkey has taken steps to provide electricity, establish a maritime border demarcation agreement and resume banking relations.